UK House Prices Drop for First Time Since June, Says Halifax

UK house prices fell in December 2017, according to the latest Halifax House Price Index. This is the market’s first decline in six months. The average price of a home in December 2017 was £225,021 – down 0.6% month on month. A squeeze on real wage growth and continuing uncertainty over the economy are thought to be key drivers in the decline, with some forecasters predicting the property market will slow further in 2018.

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House Prices Set for Growth in 2018

Halifax Community Bank’s managing director, Russell Galley, acknowledged that the annual rate of growth has moderated to 2.7% from November’s 3.9%, but expects annual price growth to continue in the range of 0-3% at the end of 2018.

“As we’d anticipated, the housing market in 2017 followed a similar pattern to the previous year. House price growth slowed, while building activity, completed sales and mortgage approvals for house purchase all remained flat,” said Galley. “However, nationally house prices in 2018 are likely to be supported by the ongoing shortage of properties for sale, low levels of housebuilding, high employment and a continuation of low interest rates making mortgage servicing affordable in relative terms.”

property prices growing despite Brexit

Property Bridging Finance Explained

Are you hoping to invest in a new property deal in 2018? With property prices falling for the first time since June, now could be the perfect time to arrange funding. Find out more about how our bridging loans work in our Beginner’s Guide to Bridging Finance, or contact us to speak directly with one of our underwriters – you can call us on 08000 44 84 84 or email us at enquiries@affirmative.co.uk.